LOTTERY PRIZE AWARDS

Senate Bill 1208 (as introduced)

Sponsor:  Sen. Michael Switalski                                                                                        

House Committee:  Appropriations

Senate Committee:  Appropriations

Complete to 12-5-06

A REVISED SUMMARY OF SENATE BILL 1208 AS PASSED BY THE SENATE 11-30-06

The State Lottery Act currently provides that prior to January 1, 2007, at least 45% of the total ticket sales shall be apportioned for the payment of prizes and that, beginning on that date, 45% of total lottery revenue shall be apportioned for the payment of prizes.  The bill would push back the date to January 1, 2012.  In recent years, payouts have averaged about 55% of ticket sales. 

MCL 432.12

FISCAL IMPACT:

Experiences in other states have shown that reductions in percentage of prizes awarded resulted in a significant reduction of ticket sales.   Assuming a reduction in ticket sales current law would result in a reduction in School Aid Revenue from the FY 2007 revenue consensus estimate of $712 million.  Additionally, the Bureau of State Lottery would incur expenses related to altering the payouts of on-line games and new instant ticket games.  The bureau has no games that offer a payout of 45%. 

 

                                                                                                  Fiscal Analyst:   Mark Wolf

                                                                                                                           Rebecca Ross

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.